Unit_07_-_Chap_12_Quiz - Points Awarded Points Missed...

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10.00 Points Missed 0.00 Percentage 100% 1. A basic premise of the aggregate expenditures model is that the amount of goods and services produced and level of employment in an economy depends: A) Inversely on the level of total spending. B) Directly on the level of total spending. C) Inversely on the level of consumption. D) Directly on the rate of interest. Points Earned: 1.0/1.0 Correct Answer(s): B 2. If you know that an increase in a household's disposable income from $35,000 to $45,000 leads to an increase in consumption from $30,000 to $38,000 then you can conclude that the: A) Slope of the consumption schedule is .75. B) Average propensity to consume is .8. C) Marginal propensity to save is.25. D) Marginal propensity to consume is.8 Points Earned: 1.0/1.0 Correct Answer(s): D 3. When planned investment exceeds saving in a private, closed economy: A) Aggregate expenditures will equal GDP. B) Aggregate expenditures will exceed GDP.
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This note was uploaded on 10/08/2010 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Summer '08 term at Pennsylvania State University, University Park.

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Unit_07_-_Chap_12_Quiz - Points Awarded Points Missed...

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